What led to the huge Sensex fall

What led to the huge Sensex fall

Global turbulence came to fore on Tuesday as the Korean neighbours exchanged firing. With world markets already weighing under the euro debt crisis and fears of China rate hike, tension between North-South Korea added salt to its wound. Asian markets in particular took a severe beating.

According to media reports, North Korea today fired dozens of artillery shells at a South Korean island, setting buildings on fire and prompting a return fire by the South.

Further, the South Korean military is said to be on its highest non-wartime alert.

The BSE benchmark index, the Sensex, after a weak start in line with its Asian peers took a sharp dip in mid-noon trades following reports of Korean turmoil.

The Sensex tumbled to a low of 19,343 -- down 615 points, however, bounced back partially and settled with a loss of 266 points at 19,692.

The Nifty too shed 84 points to end below the 6000-mark at 5925. The broader markets too recovered partially towards the close.

The smallcap and the midcap indexes closed down 1% each in sync with the benchmark index.